Question

1. The following table represents the costs and benefits of four alternative clinical programs designed to treat a single disease. Benefits are measured in terms of the number of lives saved.
   1. Identify the treatment options that are strictly inferior.
   2. Copy the table into your blue book omitting the inferior treatment options.
   3. Calculate the ICERs for the remaining treatment options.
   4. Which treatment would you recommend and why?

Treatment	Cost	Lives saved	ICER
A	$100,000	20	---------
B	$100,000	22
C	$200,000	22
D	$200,000	25

Answer 1

By ICER we can see that B is better than all others. As it is having lowest ICER and all the caluclations are performed taking "A" as base case.

In terms of no of life saved D is the best as it saved 15.

b)As per cost effectiveness we can see that B is the best and same result we got with ICER. The only difference is the ICER compares between the projects whoch are mutually exclusive and if not then we can use cost effectiveness.

c)Economists favour program B only as it is giving cost effective program.